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Cash handling internal controls should be a priority <br /> Condition and Cause <br /> MTA did not prioritize cash handling internal controls. Internal control weaknesses included: <br /> • Cash left unattended and safe door left ajar <br /> • Security cameras contain blind spots <br /> • Untimely deposits <br /> • Cash not properly reconciled <br /> • Policies and procedures were inadequate, not followed, or enforced <br /> Effect of the Condition <br /> The fare receipting system is not effective at safeguarding cash, ensuring full fares are collected, <br /> and deposits are accurate. <br /> Recommendation 2.1 <br /> "We recommend Mass Transit management prioritize cash handling internal controls. <br /> Management should be responsible for an effective internal control system and internal controls <br /> increase the likelihood that the organization will achieve their objectives." <br /> Agency Action <br /> MTA performed the following: <br /> • Developed and updated various policies and procedures to address cash handling <br /> controls <br /> • Implemented dual control <br /> • Reconciled cash counts <br /> • Safeguarded assets <br /> • Ensured physical security <br /> Audit Activity <br /> To verify status, we reviewed cash handling policies and procedures and found the control <br /> environment addressed: <br /> • Verification of Policies and Procedures: <br /> o We confirmed that Mass Transit Agency has defined procedures for their internal <br /> controls, however, we discovered anomalies in a couple of areas, procedures for <br /> various payment methods are confusing in areas where there should be consistency <br /> • Physical security: <br /> o Prenumbered and preprinted sales receipts are fully secured at the (Mo`oheau Bus <br /> Terminal) <br /> • General appropriateness and completeness: <br /> o Despite the lapses in some of the procedures, the Account Clerks are processing <br /> payments for Taxi Coupons and Licenses appropriately and their physical security was <br /> largely intact <br /> To fully implement this recommendation MTA will update the cash handling policies and <br /> procedures to include all cash handling activities. <br /> Status: Partially Implemented <br /> 10 1 Cash Handling Internal Controls Should Be A Priority <br />